News from Notch Consulting, Inc.

December 10, 2010

Carbon Black Commodity Exchange Begins Trading

Filed under: Carbon Black — Notch @ 6:44 pm

At the Carbon Black World conference in Rome, Charles McGovern, CEO of INSCX EXCHANGE (Integrated Nano-science and Commodity Exchange) delivered a paper in which he introduced a new commodity exchange for nano-materials including carbon black. The paper argued that a commodity exchange mechanism similar to those used in the metals, energy, oil, grains, and polymers industries would benefit carbon black sellers and buyers alike by increasing transparency and efficiency.

According to this market snapshot, the exchange has encountered some rough going in getting carbon black suppliers on-board.

Here is an excerpt:

One bright spot during the European session proved Furnace Blacks. During the session a Block buyer of various Furnace Blacks surfaced in the form of the exchange specialist NCM/Stekram seeking offers in 50 Metric Ton (MT) lots. Furnace Blacks (FBs) had earlier marked down but remained well-bid at the European close.

Brokers on INSCX exchange were in the market earlier today for Block size in various Carbon Blacks. Outside the US area though it remained a protracted process attempting to deal. By all accounts calls were made to India, Iran, Ukraine, Russia, but according to the specialist Broker; “We had to wait for the United States to open before we could quote a firm price to our customer, ridiculous in this day and age. Do suppliers want the business or not? Bear in mind price transparency, trade flexibility, inspection, insurance, the instant quote and reporting are features of commercial reality accepted decades ago as by mature raw materials markets. To achieve anything in metals, grains, rubber, polymers, oils nanomaterials suppliers will sooner or later be expected to make available what they supply according to the trade practice and conventions of these sectors, where buyers get the efficiency, trade flexibility and assurances they demand”, cited one dealer at NCM.

Not sure how an exchange of this type would work for many of the largest tire customers given the lengthy and extensive preapproval process required for supply contracts.

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3 Comments »

  1. Does anyone know if or when the Sale of Columbian Chemicals will take place?

    Comment by Carbon Black Follower — December 22, 2010 @ 3:24 pm

  2. Carbon Credit World (CCW)

    Carbon Credit World (CCW) has been active in the climate change market since 2004. The company has built up an outstanding reputation as service provider with a clear and in-depth understanding of the carbon market instruments, the financial arrangements and possible types of transactions. CCW mainly focuses on the development of emission reduction projects.

    CCW now manages a considerable portfolio of CDM and VER projects and so far has developed or assisted more than 150 CDM projects – from PDD writing to sales of CERs/VERs and further to support of monitoring and verification of emissions reduction from projects.

    CCW provides services to most of the larger corporate actors in the carbon market as well as key international institutions such as the ADB, EC and UNDP in the field of climate change.

    http://www.carboncreditworld.net
    http://www.greenroutetech.com

    Comment by chandrabhushan786 — January 6, 2011 @ 3:26 am

    • While of course a positive development, Carbon Credits have absolutely nothing to do with Carbon Black, the latter which is a nanomaterial used for decades in tire production etc. Also have not Carbon Blacks been graded ASTM for decades so pre-approval to be used in auto grades has long been established. I think the point about INSCX exchange is being missed; this is about being able to source and supply more effectively, something we all want surely?

      Mike

      Comment by michael — March 19, 2011 @ 6:51 pm


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